Vol. 6, No. 5 – February 26, 2007

 

 

Innocent Sellers Fairness Act (H.R. 989) Reintroduced

NLBMDA takes action to protect Innocent Sellers across the country

 

NLBMDA’s top legislative priority, the Innocent Sellers Fairness Act, was reintroduced in the 110th Congress by Representatives Dan Boren (D-OK) and Steve Chabot (R-OH) on February 12, 2007. This critical legislation provides that (1) sellers do not take on liability for a product merely by selling that product; and (2) if sellers are negligent with respect to certain, specific non-sale activities, they will be responsible for the harm their negligence causes.

 

“Simply put, the bill only holds sellers responsible in proportion to their wrongdoing and frees them from liability when they have done nothing wrong," said Shawn Conrad, NLBMDA President. “This common sense approach won’t prohibit consumers from seeking legal recourse when warranted, but it will ensure that truly innocent sellers do not bear the cost of fighting frivolous claims against them.”

 

The Innocent Sellers Fairness Act was born out of necessity. Unfortunately, unfounded and unfair lawsuits are increasingly having a negative effect on the ability of dealers to run their businesses and contribute to their communities. In fact, a 2005 survey of NLBMDA members found that more than 1 in 4 has been the subject of product liability lawsuits in the last five years. The high costs of defending such lawsuits – which can run as high as $100,000, according to Small Business Administration estimates – typically force dealers to settle, regardless of the merit of the case.

 

According to Conrad, “This issue impacts all of us. NLBMDA needs your help in educating other dealers and your legislators about H.R. 989 – the more dealers that get involved in promoting Innocent Sellers, the bigger impact we can make in Washington.”

 

For more information on how you can help promote Innocent Sellers or make a donation to NLBMDA’s ISFA Fund, please contact Sarah Owen at sarah@dealer.org, call 800-634-8645 or go to www.buildthevote.org. Checks also may be mailed to “NLBMDA ISFA Fund,” 900 2nd Street NE, Suite 305, Washington, D.C. 20002.

 

 

sign up NOW for estimating workshops

 

You still have time to sign up for MLA’s popular estimating workshop – but the last session is just one week away!

 

MLA is pleased to announce that we have engaged Mike Butts, LBM Solutions, to provide our popular estimating training in 2007. Mike is one of the most recognized trainers in the lumber and building material industry. The training will be offered in Wichita, Kan. on Feb. 20-21 and in St. Louis, Mo. on March 6-7.

 

Day 1 leads participants through a typical blueprint format, scale and content. Students will develop an understanding of architectural symbols such as wood, concrete, insulation and electrical schedules, knee walls, wall sections and cantilevered joists. They’ll also learn about “specification and general notes” – their necessity, importance and how they relate to retail sales. In addition, the seminar teaches participants how to approach reading a blueprint to ensure thoroughness and accuracy when completing an estimate of materials.

 

Day 2 focuses on the skills necessary to calculate the framing lumber requirements of the complete shell of the house through comprehensive study of each construction item. Included in this is a review of contemporary “cut roofs” and their unique estimating requirements. Attendance at Day 1 is mandatory for attending Day 2 or the student must have proficiency at reading blueprints.

 

Mike Butts is the founder and President of LBM Solutions.  His abilities and experience have been called "unsurpassed by other consulting firms in the industry.”  His experience has been gained through extensive work in the field at "street level," implementing the programs and practices he teaches.

 

When/Where:

 

March 6-7 – St. Louis at the Embassy Suites Hotel St. Louis Airport

 

Member Pricing:

 

• Sign up for Day 1 or Day 2 separately at $275 per day.
• Two-day workshop package - $445 for the first person from a member firm - $425 each for additional personnel.

 

Nonmember pricing is available.

 

Complete information and registration forms are available upon request from MLA at 800-747-6529. Or, simply reply to this email and we’ll send complete information today! You can download a registration form at www.themla.com.

 

Step Up to Bat for Innocent Sellers – Register Now for the 2007 Legislative Conference

 

NLBMDA is accepting registrations for the 2007 annual Legislative Conference, which will be held at the Ritz-Carlton Hotel in Washington D.C. from April 16-18, 2007.  This conference gives dealers an opportunity to receive an update on what is happening with industry priorities – including Innocent Sellers – in Washington and to meet with their Members of Congress and Senators to make the case for our issues. 

 

Now, more than ever, active grassroots participation in promoting Innocent Sellers is critical.  Legislators are more likely to respond to the pleas of their constituents, so plan now to attend and help us make the case for Innocent Sellers.  Please visit NLBMDA’s website at www.dealer.org to download a brochure and register.  The hotel cut-off is March 15 and the Ritz-Carlton will SELL OUT again this year, so make your reservations early by calling 202-835-0500.  

 

 

 

LUMBER NEWS – QUICK GLIMPSES

 

Weyerhaeuser to Adjust OSB Production at Three Mills… Weyerhaeuser last week released details regarding reductions at three oriented-strand board (OSB) mills in Canada and the U.S. Weakened demand has led the timber giant to cut back OSB production by approximately 500 million to 600 million square feet annually.

 

Source: LBM Daily, February 12, 2007

 

Senate Minimum Wage Amendment Would Debar Contractors for Immigration Violations... An amendment to the minimum wage bill under consideration in the U.S. Senate would prohibit companies that hire illegal immigrants from receiving federal government contracts. Under the measure, introduced by Sen. Jeff Sessions (R-AL), companies that had government contracts and had illegal aliens on their payroll at the time the law took effect would be banned from receiving federal contracts for 10 years. Moving forward, other contractors employing illegal aliens would be banned for seven years. Businesses that used the federal government's Basic Pilot Program to verify the employment eligibility of their workers would be sheltered from the ban. The Basic Pilot Program is currently in a testing stage and is being used by approximately 10,000 employers on a voluntary basis. Participation is expected to be made mandatory as part of any comprehensive immigration reform. ASA and coalition partners are currently lobbying federal policymakers concerning the terms of the pilot program.

Source: American Subcontractors Association, February 13, 2007

 

Home Builder Confidence Levels Highest Since June… According to the National Association of Home Builders (NAHB), February saw a spike in builder sentiment unmatched since June 2006, spurred by higher demand caused by low mortgage rates and sales incentives.

 

Also contributing to the rise in demand were lower mortgage rates, a drop in energy prices, and growth in employment and household income, says David Seiders, NAHB's Chief Economist. "The ... results are consistent with Federal Reserve Chairman Ben Bernanke's assessment to Congress this week that there are signs of stabilization on the demand side of the housing market."

 

Source: LBM Daily, February 16, 2007

 

Last Week in Washington… Taking another step toward increasing the minimum wage, the House of Representatives passed the Small Business Tax Relief Act. It was attached to the Fair Minimum Wage Act and now goes to a conference with the Senate. Congress is in recess this week, but behind-the-scenes negotiations could begin.

 

The House bill extends Section 179 small business expensing through 2009, increases the current inflation-adjusted limit of $112,000 to $125,000 and increases the phase-out threshold from $450,000 to $500,000. It extends the work opportunity tax credit (WOTC) for one year and expands it to veterans. It waives the alternative minimum tax limitations on the WOTC and allows unincorporated businesses owned jointly by a married couple to file as a sole proprietorship so that both receive credit for paying Social Security and Medicare taxes. Unlike the Senate bill, it does not extend 15-year depreciation to owned property or expand eligibility for cash accounting.

 

Cost is a big difference. The Senate bill would cost the government $8.3 billion in lost revenue; the House bill would cost just about $1 billion. Either way, new rules require lawmakers to find revenue offsets. The two houses don’t agree about them either.

 

Source: North American Retail Hardware Association (NRHA), February 19, 2007

 

U.S. Home Builders Rekindle Softwood Deal Debate… Jerry Howard, chief executive of the National Association of Home Builders, is leading a group of U.S. home builders encouraging the Canadian government to walk away from the newly enacted softwood lumber deal if there continue to be efforts by the U.S. government to try to squeeze more concessions out of Canadian producers.

 

Source: LBM Daily, February 26, 2007

 

2005 Health Care Spending… The rate of spending on health care in the U.S. slowed for the third consecutive year in 2005, increasing 6.9 percent – the slowest rate of growth since 1999, when the rate of growth was 6.2 percent, according to the Centers for Medicare and Medicaid Services (CMS). By comparison, previous years’ spending rates were 7.2 percent in 2004 and 8.1 percent in 2003. Health-care spending reached $2 trillion or $6,697 per person, and represented 16 percent of the nation’s gross domestic product in 2005. Go to: http://www.cms.gov/ for more information.

 

Source: Milliman: Monthly Benefit News and Developments, February 2007

 

MEMBER NEWS

 

Industry Veteran Retires

 

Jon Davis, Star Lumber’s Senior Vice President, is retiring after 44 years in the building material industry. He was president and co-owner of Davis Home Center, Hutchinson, Kan., for 27 years until selling his business to Star Lumber, Wichita, in 1990. For the past 17 years, he has worked for Star Lumber in several senior management positions. For the last 11 years, Jon was Senior Vice President in charge of Star’s Building Material Division with division sales of $80 million in 2006. Star’s total company revenue was $126 million in 2006. 

 

During his career, Jon was involved in 27 business start-ups, acquisitions and divestitures. He has been in the truss and wall panel business for 44 years. In addition to his building material business, Jon has been a co-owner of a home building firm, remodeling firm and modular housing company.

 

Jon has been very active in his career in various trade associations and organizations including: President – Mid-America Lumbermens Association, Vice President – National Lumber & Building Material Association; past Board Member – Do- it-Best Corporation; and past Board Member of Dataline Computer’s National Advisory Board. Jon was also a featured speaker at a National Lumber Dealer Convention in Toronto and an International Home Center Show in Dallas.

 

Davis has started a new part-time career as owner of Davis Consulting. He is currently working with clients in several states on a variety of consulting projects including: board member for several privately held building material firms; strategic planning; truss and wall panel plant design and operations; sales management; effective builder incentive programs; acquisitions and divestitures; and builders’ showroom design and operations.

 

In addition to his management consulting, Jon is also currently aligned with the American Association of Roundtables as a facilitator for several of their roundtables. Jon’s e-mail address is jondavis200@cox.net.

 

Source: Star Lumber, Wichita, Feb. 26, 2007

 

ENAP, Inc announces the selection of a new Vice President of Sales

 

ENAP, Inc is excited to announce that Scott Schaefer has accepted the position of Vice President of Sales. Scott’s background includes employment at Armstrong Holdings and WR Grace handling both sales and sales management positions. Most recently, Scott served as President of Plibrico, a manufacturer of high temperature ceramics servicing the industrial market. Scott’s 14-year tenure at Plibrico included the operation of seven U.S. sales offices serving 28 independent distributors worldwide.

 

“Scott’s expertise in the successful operation of independent businesses brings him credibility in this newly created executive position. Scott will be working with our field staff to facilitate growth at the member level. This will be a solution-oriented position and critical to our continued success as an LBM cooperative,” stated Russ Kennedy, President & CEO.

 

Source: ENAP, Inc., a lumber and building materials cooperative located in New Windsor, New York, founded in 1967 and servicing premier independent dealers nationwide.

 

Two Plans Better Than One

 

In recent years, with the introduction of Qualified High Deductible Health Plans (QHDHPs) and Health Savings Accounts (HSAs), business owners have more tax-saving options in health insurance. While you may need to offer employees a traditional health plan with lower deductibles as an employee retention strategy, you may also benefit from the tax-free accumulation of funds in a health savings account. So, how can you get the best of both worlds?

 

One way is to keep a traditional plan and use a class system to take advantage of an HSA account. You can set up two separate plans – one traditional plan and one QHDHP for you and your highly compensated key employees that would fit into this class.

 

You and those key employees can contribute up to $2,850 to a health savings account for an individual and as much as $5,650 for a family in 2007, capped with a maximum of the deductible amount in your QHDHP. This money grows tax-free and can be withdrawn